Mean Cuisine?

THE LOW-CARB DIET CRAZE that's sweeping the nation is the weight-loss method du jour, but a new study suggests that it might be a flash in the pan.

A recent study by the Hartman Group, a health-and- wellness market research and consulting firm based in Bellevue, Wash., found that 52% of those who followed a low-carbohydrate diet quit because "it was too hard to maintain." In contrast, about 26% of those who tried other weight-loss methods quit for the same reason. Moreover, the study, entitled "The Vanishing Potato: Understanding the World of Low-Carb Dieting from a Consumer Perspective," found that whereas 29% of all weight-loss dieters quit because they reached their goal in shedding pounds -- but only 14% of those following the low-carb variety quit for that reason. Low-carb diets stress reducing carbohydrates, like bread, in favor of protein like meat and cheese products.

"Our sense from talking to consumers...is that they find themselves surrounded by carbs," says David Moore, director of quantitative research at Hartman and a co-author of the study. People can hold off eating carbs for a time, but "after a while, it wears you down and you can't adhere to it."

Not only is the ubiquity of carbohydrates problematic for many consumers, Moore says, but because many labels lump together everything that isn't a protein or a fat into the carbohydrate category, dieters must adjust their carb counts to account for the healthier fiber content in carbs. People end up spending too much time calculating carbs and not enough time eating. "It kind of takes the joy out of it, and reduces it to science or a mathematical exercise," he says.

A spokeswoman for Atkins Nutritionals doesn't dispute the difficulty of the low-carb lifestyle. The health-information and low-carb product company is named for Dr. Robert Atkins, who propounded the low-carb theory in his 1972 book, Dr. Atkins' Diet Revolution (which in one form or another has sold 18 million copies). "There's no magic bullet," she says. But with 65% of the population overweight, "people have to find programs that work for them."

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Slow Dance

Economic growth moderated in the second quarter, to 3%, as consumer spending fell to its lowest rate in three years. Economists had expected gross domestic product, which rose to a revised 4.5% in the first quarter, to advance 3.6% in the quarter. The data followed other reports that suggested some slowing in the economy. Treasuries rallied.

Oily Business

Crude-oil futures soared to a record $43.85 a barrel in New York Friday, the second time last week they set a new high. The rally, which saw oil prices surge $1.07 a barrel, came amid fears of a possible loss of output from Yukos, and attacks on oil installations in Saudi Arabia and Iraq. Shares of Yukos were whipsawed, but ended 16% higher Friday after the government gave it a month to pay off its $3.4 billion tax bill.

Candidate Kerry

John Kerry accepted the Democratic nomination to run for president, emphasizing his commitment to national security and invoking his service in the Vietnam War. He outlined an economic platform that includes raising taxes on those earning more than $200,000 a year and tougher enforcement of trade laws.

Deficit Revisions

The White House estimated that the fiscal 2004 budget deficit would reach a record $445 billion, lower than its estimate of $521 billion in February. The administration also forecast real gross-domestic-product growth of 4.7% this year.

Medicaid Settlement

Schering-Plough
pleaded guilty to defrauding the Medicaid insurance program, and will pay $345.5 million in fines and damages to the U.S. government. The company admitted to paying cash to HMOs to keep one of its drugs on their list of approved drugs.

Bell Ringer

Moody's Investors Service cut its rating on
AT&T's
debt to a junk level. Moody's cited concerns about competition hurting cash flow. AT&T, which recently said it won't market residential phone service anymore, disagreed with the action and said it has one of the strongest balance sheets in the industry.

Eye-Popper

Google estimated its shares will sell at anywhere from $108 to $135 each in its initial public offering, due soon. At those prices, the Internet search firm would be valued at as much as $36 billion. (See Follow-Up column for more on Google.)

Shareholder Payment

Bristol-Myers Squibb
said it will pay $300 million to settle a class-action suit that accused it of lying about its ImClone investment and its accounting. The company didn't admit any wrongdoing.

21st Century Move

The New York Stock Exchange said it will "soon" make an updated filing of its long-awaited plans to improve its electronic-trading platform.

Unfriendly Skies?

United Airlines' machinists' union sued its top executives in federal court over their decision to stop employee pension-plan payments while it remains in bankruptcy. United called the claims baseless.
Delta Air Lines
sought $1 billion in cost cuts from pilots.

Doughnut Probe

Krispy Kreme Doughnuts
said the SEC began an informal probe into franchise repurchases and a profit warning. The company is cooperating.

Odds 'n' Ends

A former Enron unit executive will pay $14.7 million to settle civil fraud charges.

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